Can you determine which policy maker is correct?

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Question 1 – The government’s budget surplus in Macroland has risen consistently over the past five years. Two government policy makers disagree as to why this has happened. One argues that a rising budget surplus indicates a growing economy; the other argues that it shows that the government is using contractionary fiscal policy. Can you determine which policy maker is correct? If not, why not? Question 2 – The Congressional Research Service estimates that at least $45 million of counterfeit U.S. $100 notes produced by the North Korean government are in circulation. -a. Why do U.S. taxpayers lose because of North Korea’s counterfeiting? -b. As of December 2016, the interest rate earned on one-year U.S. Treasury bills was 0.87%. At a 0.87% rate of interest, what is the amount of money U.S. taxpayers are losing per year because of these $45 million in counterfeit notes?

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